Black Friday shoppers beware: Scammers likely to use 'pick up in store' scam

While Black Friday may provide relief for stores and businesses, it might not be so good for shoppers. Buzz60's Mercer Morrison has the story.
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Holiday spending is expected to be strong in 2018. Consumers say they'll spend on average $1,007.24 during the holiday season -- up 4.1 percent, according to the National Retail Federation. Fraudsters will be out in full force, too.(Photo: Susan Tompor, Detroit Free Press)

Really, you might even have 33 days, if you plan to shop on Thanksgiving, too.

The bad news: The fraudsters have more time to rip us off, as well. Oddly enough, much of the online fraud heats up right after Thanksgiving dinner, experts say, as con artists join consumers in trying to get a jump on those Black Friday deals.

"Fraudsters are in business to make money," said Glen Goldstein, senior vice president of technology, retail and e-commerce markets at TransUnion.

So crooks will be tapping into every trick and tool that holiday shoppers use to save a little time and energy – ordering online and picking up in the store, using credit or debit cards (yours or someone else's) and loading up the cart with quick gift ideas, such as popular electronics and gift cards.

They're going to take advantage of a hectic season, distracted shoppers and the push to drive retail online.

More than 40 percent of holiday shoppers will make nearly all of their purchases online, according to a new survey on Holiday Shopping and the Impact of Fraud by TransUnion.

Millennials as well as higher income households are more likely to turn to their smartphones and laptops to pick up holiday deals.

Retailers, though, find themselves walking a fine line between setting up online security measures that will stop crooks in their tracks but won't leave consumers so frustrated that they decide to leave the site to shop somewhere else.

One hot fraud is likely to be built around the popular "buy online, pick up in-store" model.

About half of consumers expect to buy online and pick up in the store this holiday season, according to a survey by the National Retail Federation.

Shoppers love the idea of being able to hunt for the best prices and coupons online, order their gifts and then make a quick trip to the store to pick them up to save time and money on any possible shipping charges. And honestly, you don't have to worry about your child dragging you yet one more time through the toy aisle if you're able to go on a short errand without them.

Once they order, they may quickly walk into the store or to the area created for online pick up to get their items. They move fast enough to make sure there is not enough time for the online system to fully connect and spot any fraudulent activity.

The store, perhaps unwilling to offend a customer, promptly fills that order before the online transaction has been validated. The crook might be asked to provide a driver's license. But that's not a hurdle.

"Anybody who has ever been a college student knows that a driver's license can be easily faked," Goldstein said.

One reason ID thieves are turning to the buy-online platform is that it's far harder to create a fake credit card to use at the register using stolen information, thanks to the use of chip-enabled debit and credit cards, according to Erika Dietrich, global director for payments risk for ACI Worldwide, a global provider of real-time electronic payment and banking solutions.

"It's very hard for fraudsters to create chips that work," Dietrich said.